The standardisation and consolidation of support functions into single entities providing common services is known more generally as Shared-services. Sandy Mohonathan of Accenture explains how Globalisation, and the ever shifting economic and talent environment of the multi-polar world is driving rapid change in how shared-services organisations are structured, located and staffed.

by Sandy Mohonathan

ABOUT THE AUTHOR

Sandy Mohonathan is the HR Director of Accenture South Arica

Shared-services (the standardisation and consolidation of administrative or support functions into a single entity providing common services) has become a powerful value creator for private and public-sector organisations alike over the past couple of decades. This management and organisational trend has helped enterprises deliver better service at agreed-to demand and cost levels. It has brought focus to technology investments and has driven process excellence across multiple functions and industries. Shared-services has helped organisations leverage global operating models and establish new governance processes for global operations. For all the success they have experienced with shared-services strategies however, the question many executives are asking today is, ‘What's next?’ Shared-services has delivered impressive results for companies in terms of cost, quality, productivity, customer service and other key business metrics. But once organisations have realised the initial savings and productivity increases, how can they drive continuous value and ongoing competitive advantage? Recent Accenture research has examined the practices and innovations being explored by shared-services leaders — those organisations whose shared-services approaches and strategies are leading them toward high performance. Our research finds that high performers in shared-services are pushing the boundaries, always exploring ways in which shared-services can deliver business value beyond cost savings and avoidance. Accenture believes that a shared-services model, properly planned and deployed, can become a key driver of high performance in a global business environment.

Organisation trendsFrom an organisational standpoint, we find that progressive enterprises are structuring their shared-services organisations to run like a business, with active governance and process management discipline. This distinctive approach to organisational planning and execution involves the following specific structural capabilities:

End-to-end management

High performers are applying shared-services across an entire process, end-to-end, managed by a global process owner (an executive with the responsibility for driving standardisation across the enterprise, measuring efficiencies and driving continuous improvement).

Customer demand management

Ultimately the business’s customers determine the fate of a shared-services organisation. If you meet and exceed their expectations, you thrive. If you don't, you die. Rather than turning aside customer requests not covered in the menu of shared-services, high performers are developing better customer demand management capabilities. They are becoming much more responsive and agile, looking at requests for new services and working either to meet those needs or to re-engineer processes so that the need no longer exists.